Title
American Insurance Company vs. Republic and Bureau of Customs
Case
G.R. No. L-25695
Decision Date
Oct 23, 1967
A shipment of parts was lost; insurer sued the Republic and Bureau of Customs. Supreme Court dismissed, citing non-suability of the state.

Case Summary (G.R. No. 214241)

Summary of Facts

Upon delivery, the Bureau of Customs found that one box of the diesel engine parts was in bad order, with various items missing, valued at P1,076.43. The American Insurance Company, having compensated the consignee for the loss, sought recovery of this amount through a complaint filed on July 20, 1964, in the City Court of Manila. The City Court ruled in favor of the American Insurance Company, ordering the defendants to pay P1,076.43 along with legal interest from the date of filing.

Legal Proceedings and Argument

The Republic of the Philippines and the Bureau of Customs subsequently appealed the decision to the Court of First Instance. The defendants denied liability and raised the issue of non-suability, asserting that the Republic could not be sued without its consent and that the Bureau of Customs, as an agency of the government, lacked the capacity to be involved in a lawsuit. Following partial stipulations on the lost items, the Court of First Instance dismissed the case on January 13, 1966, supporting the defendants' claims.

Legal Question

The central legal question presented on appeal is whether the Republic of the Philippines and the Bureau of Customs can be sued under the circumstances of this case. The Supreme Court referenced the decision in Mobil Philippines Explorations, Inc. v. Customs Arrastre Service and Bureau of Customs, which established that the arrastre operations conducted

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